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2012 (10) TMI 478 - HC - Income TaxInterest earned on deposits made out of the non-SLR funds - Deduction under Section 80P(2)(a)(i) - Held that:- As decided in Mehsana District Co-operative Bank Ltd. Versus Income-Tax Officer [2001 (8) TMI 15 - SUPREME COURT] no dispute with the preposition that the word attributable is much wider in scope than derived. The Legislature has used the words “attributable to” in conjunction with the phrase “any one or more of such activities”. Investment of the funds by the banks including the non reserves were part of the banking activities since no bank would like its reserve funds to remain idle and not earn any interest. This is not only prudent business management but is also a part of the activity of banking. Therefore, the interest earned on such deposits is directly attributable to the business of banking - in favour of assessee.
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